A trade loophole called de minimis helped drive explosive growth for bargain sites such as Temu and Shein, allowing them to ship cheap goods from China to U.S. consumers without having to pay taxes and import duties.
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About 100 countries have de minimis exceptions, based on a wide range of monetary thresholds. The U.S. level used to be $200, but it rose to $800 in 2016 — one of the highest in the world — when then-President Barack Obama signed the bipartisan Trade Facilitation and Trade Enforcement Act. Across the European Union, the level is 150 euros (about $156).
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Even before Trump was sworn in last month, de minimis was being targeted for change. The Biden administration proposed a new rule last fall to close the loophole. And U.S. agencies and politicians have said the law is prone to abuse, from unscrupulous retailers falsely labeling expensive items as costing under $800 to criminals shipping illegal drugs under the guise of innocuous goods.
As Trump's new 10% tariff on Chinese goods took effect, the U.S. Postal Service said on Tuesday that it was suspending acceptance of packages sent from China and Hong Kong — but it reversed course on Wednesday, saying it's working with Customs and Border Protection on a way to collect the new tariff "to ensure the least disruption to package delivery."
Phil Edwards actually had a really good video 2 weeks ago on de minimus that I found really informative : https://www.youtube.com/watch?v=m_w6eqzen68
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